The prosecution was responding to a petition submitted to the High Court of Justice by a group of bereaved parents, requesting that the names of all Palestinian prisoners included in the prisoner swap be disclosed to the public.

According to the prosecution, Israel is likely to release the 450 prisoners requested by Hamas as part of the deal to see Shalit released after three years of captivity in the Gaza Strip.

Following that, said the prosecution, Israel would free another 530 prisoners as a "gesture to the Palestinians." The list of those prisoners has still not been finalized, said the prosecution.

None of the names of prisoners to be exchanged will be published until after a deal has been secured, according to the prosecution.

In its statement, the prosecution also wrote that the military censor is authorized to forbid any particular piece of information from being published in the media if publication could seriously harm the chances of Shalit's quick return.

The censor is also authorized to forbid any article that might increase the 'price' Israel would pay for Shalit and thus significantly harm the security of the state, said the prosecution.

Nonetheless, there is no practical way to carry out public negotiations against a bitter enemy, wrote the prosecution, adding that Israel is facing a terror organization that is holding a kidnapped soldier and is requesting the highest price for his release.

"Ambiguity on the part of Israel is absolutely necessary. Without ambiguity, it would not be possible to carry out effective negotiations and to realize the goal of bringing Gilad Shalit home," wrote the prosecution.

Shalit faily neither 'encouraged nor ill at ease'

The abducted soldier's parents met on Sunday with Foreign Minister Avigdor Lieberman, as Israel and Hamas reportedly were preparing to seal the prisoner swap deal.

"I am not feeling encouraged nor am I ill at ease," Noam Shalit told reporters on his way into the meeting. "We are still waiting."

Media reports last week predicted that a prisoner exchange deal could be completed by Monday.

Israel and Hamas came closer to the prisoner deal last week when officials said Israel had dropped objections to releasing 160 prisoners. According to Germany's Der Spiegel, the deal will secure the release of 1,000 Palestinian prisoners in total, 450 in the first phase and the remaining 550 later.

The Voice of Palestine radio station said Saturday that Shalit would be transferred in coming days to Egypt, which has been mediating for his release.

However, media sources have reported a snag in the talks over some 70 to 100 names of Palestinian prisoners which Israel is not willing to release - including Fatah's West Bank secretary general, Marwan Barghouti.